Mobile Payments Just Got Hotter in the UK

Google recently announced that Android Pay will be launching in the UK in the next few months. While Android Pay launched in the U.S. last September, sporting a healthy registrant rate of 1.5 million users per month, this marks Google’s first wallet market in Europe and second outside of the U.S. With major banking, retail, transportation agencies and apps all set to support Android Pay, this could signal the beginning of massive adoption in the UK.

The Mobile Wallet Trajectory

Any device running on Android 4.4 OS or higher and fitted with a Near Field Communication (NFC) chip can essentially “tap to pay.” The UK provides an ideal environment for Android Pay as many point of sale (POS) terminals already have NFC technology built-in.

According to the UK Card Association, the UK reached 1 billion contactless card purchases in 2015. And the value of these transactions more than double the previous seven years combined. Additionally, 1 in 8 transactions was a contactless payment in December 2015, proving that NFC technology is both popular and convenient.

As brands eagerly embrace the shift in payment technology, it’s easy to see how enabling smartphones to do the same makes a lot of sense. With Android OS market share at 52.6% of all mobile devices, Android Pay is well positioned to spur exponential growth for contactless payments.

One Tap to Manage it All

While the focus has been centered around mobile wallet adoption for payments, it’s mobile wallets on the non-payment side that will unlock the potential of a 100% frictionless transaction: the idea that smartphones will fully replace the physical wallet.
Mobile wallets will not only serve as a utility for payment, but as a utility to store loyalty cards, coupons, sales offers, tickets and more. Imagine, one tap to manage it all — transact payments, redeem a coupon and earn loyalty rewards simultaneously. In combination with mobile payments, mobile wallets on the non-payment side will unlock the true potential behind mobile wallets, providing an ultra convenient, smooth experience that will impact behavior change.